Britannia Steam Ship Insurance Assn. Europe (The)

This report does not constitute a rating action. Overview Key strengths Key risks Extremely well capitalized, with capital redundant at the 99.99% confidence level. A largely undiversified product range with an exclusive focus on protection and indemnity (P&I) lines. Close and long-standing relationships with shipowner members, with a strong mutual ethos and selective approach to underwriting. Exposure to the volatile marine P&I insurance market, with high claims variability. Britannia reported a net combined ratio of 138% for the fiscal year ending Feb. 20, 2025, reflecting a sharp rise in both the frequency and severity of pool claims. While this represents a challenging year, the club?s technical performance has lagged the sector average over the longer term, with an average combined

...The club has experienced a run of weak results, underperforming our expectations. Britannia reported a net combined ratio of 138% for the fiscal year ending Feb. 20, 2025, reflecting a sharp rise in both the frequency and severity of pool claims. While this represents a challenging year, the club's technical performance has lagged the sector average over the longer term, with an average combined ratio of 116% over the past five years. Britannia maintains a solid and established position within the marine liability market; however, recent underwriting performance has been below our expectations and is a key factor in our selection of the `a-' anchor. We expect management to continue implementing corrective measures, including further de-risking of its underwriting portfolio, higher deductibles, and additional rate increases. While we view these steps positively, their impact on the results will take time to materialize....

Full Report